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LAW AMENDING AND SUPPLEMENTING A NUMBER OF ARTICLES OF THE LAW ON MINERALS

Pursuant to the 1992 Constitution of the Socialist Republic of Vietnam, which was amended and supplemented under Resolution No. 51/2001/QH10 of December 25, 2001, of the 10th session of the Xth National Assembly,

This Law amends and supplements a number of articles of the Law on Minerals, which was passed on March 20, 1996, by the National Assembly of the Socialist Republic of Vietnam.

Article 1.- To amend and supplement a number of articles of the Law on Minerals as follows:

1. Article 2 is amended and supplemented as follows:

"Article 2.- Governing scope and application subjects

1. This Law provides for the management and protection of mineral resources, the basic geological survey of mineral resources and mineral activities (including prospection, exploration, exploitation and processing of minerals in solid or gaseous form, mineral water and natural thermal water); particularly, oil, gas and other kinds of natural water shall be governed by other legal documents.

2. This Law applies to the state agencies performing the task of state management over minerals; the organizations performing the task of basic geological survey of mineral resources; the domestic organizations and individuals, foreign organizations and individuals, and overseas Vietnamese conducting mineral activities in Vietnam; other organizations and individuals involved in the management and protection of mineral resources.

Where treaties to which the Socialist Republic of Vietnam has signed or acceded contain provisions different from those of this Law, the provisions of such treaties shall apply."

2. To add Article 3a as follows:

"Article 3a.- Principles of mineral activities

Activities of mineral prospection, exploration, exploitation and processing must adhere to the following principles:

1. Mineral resources must be protected, exploited and used in a rational, economical and efficient manner to satisfy the requirements of immediate and long-term sustainable socio-economic development;

2. The mineral exploration, exploitation, processing and use must be conducted under the planning approved by competent state agency(ies); ensure labor safety and sanitation; be closely combined with the protection of the environment, other natural resources, natural landscapes and historical-cultural relics; create conditions for infrastructure development, stabilize and improve the life of people in localities where minerals are exploited and/or processed, and ensure the national defense, security, social order and safety;

3. Scale of, and technologies for, mineral exploitation and processing must be suitable to the characteristics of each type of mineral, with socio-economic efficiency serving as a basic criterion for investment decision; the advanced and appropriate exploitation and processing technologies shall be applied to maximize the coefficient of recovery of main minerals and auxiliary minerals and the value of processed products; to raise efficiency, quality and competitiveness of mineral products."

3. To add Article 3b as follows:

"Article 3b.- Mineral planning

1. Mineral plannings shall be formulated for territorial regions and types of mineral, including:

a/ Planning on basic geological survey of mineral resources;

b/ Planning on mineral exploration, exploitation, processing and use.

2. Competence to approve mineral plannings is provided for as follows:

a/ The Ministry of Natural Resources and Environment shall formulate and submit to the Prime Minister for approval the planning on basic geological survey of mineral resources, and direct and organize the implementation thereof;

b/ The Ministry of Industry shall formulate and submit to the Prime Minister for approval the planning on mineral exploration, exploitation, processing and use, except for those used as construction materials or raw materials for cement production;

c/ The Ministry of Construction shall formulate and submit to the Prime Minister for approval the planning on exploration, exploitation, processing and use of minerals as construction materials or as raw materials for cement production;

d/ People's Committees of provinces or centrally-run cities shall organize the formulation and submission to People's Councils of the same level for approval of plannings on exploration, exploitation, processing and use of minerals of the types falling under their permitting competence defined at Point b, Clause 1, Article 56 of this Law.

3. The Government shall specify the formulation and implementation of mineral plannings."

4. Article 5 is amended and supplemented as follows:

"Article 5.- The State's policies on minerals

1. The State shall invest in the planning and basic geological survey of mineral resources in line with the socio-economic development strategy, planning and plans of each period; the training and development of human resources, scientific research, technological application and development in the basic geological survey of mineral resources.

2. The State shall create conditions for organizations and individuals to invest in mineral exploration, exploitation and processing.

3. The State shall adopt incentive policies to promote investment in projects on exploitation associated with on-spot processing of minerals in areas with difficult socio-economic conditions and areas with particularly difficult socio-economic conditions; projects where advanced techniques and technologies are applied to protect the environment, fully extract useful fractions, and turn out metal or alloy products or products of high socio-economic value and efficiency; projects on processing of imported minerals to satisfy the domestic consumption demand and export.

4. The export of minerals in form of unprocessed raw materials or refined ores is restricted. The lists, conditions and standards of export minerals and minerals restricted from export shall be promulgated by the Government.

5. The State shall adopt policies on investment in exploration of some important types of mineral in service of the implementation of the national socio-economic development plan; and ensure the state budget's allocations for the protection of mineral resources.

6. The State shall protect legitimate rights and interests of organizations and individuals in mineral activities according to the provisions of law; and encourages organizations and individuals to provide insurance for activities of mineral exploration, exploitation and processing."

5. Article 8 is amended and supplemented as follows:

"Article 8.- Prohibited acts

The State strictly prohibits the following acts:

1. Conducting basic geological survey of mineral resources, prospection, exploration, exploitation, processing, storage, transportation, purchase and sale of minerals in contravention of law;

2. Violating mineral plannings, or encroaching upon areas where mineral activities are banned or temporarily banned;

3. Failing to properly fulfill the obligations in mineral activities under the provisions of Articles 23, 27, 33, 46 and 52 of this Law;

4. Disclosing information on mineral resources which have been classified as state secrets;

5. Abusing positions and powers to act in contravention of the provisions of law on minerals;

6. Other prohibited acts according to the provisions of law on minerals."

6. Article 9 is amended and supplemented as follows:

"Article 9.- Responsibilities to protect mineral resources

1. The Ministry of Natural Resources and Environment shall identify areas where exist mineral resources already surveyed and assessed, and notify People's Committees of provinces or centrally-run cities thereof for management and protection.

2. People's Councils and People's Committees at all levels shall, within the ambit of their respective tasks and powers, have to apply measures to protect natural resources in their localities, including areas where minerals have been discovered but not yet notified by the Ministry of Natural Resources and Environment.

3. Organizations and individuals shall have the right and obligation to protect mineral resources and preserve state secrets on mineral resources.

4. Organizations and individuals permitted to conduct mineral activities shall have to protect minerals in the areas where they are permitted to conduct mineral activities.

5. Organizations and individuals that make plannings on construction of population quarters or fixed works in areas where exist mineral resources already surveyed, assessed or where mineral reserves have been explored or approved shall have to submit such plannings together with written opinions of competent state management agencies in charge of minerals, defined in Clause 1 of Article 56 of this Law for approval.

The Government shall stipulate the formulation and approval of plannings on construction of defense and security works in areas where exist mineral resources already surveyed and evaluated."

7. Article 41 is amended and supplemented as follows:

"Article 41.- Exploitation and processing of minerals to be used as common construction materials

1. Activities of exploiting and processing minerals to be used as common construction materials must comply with the provisions of this Law on mineral exploitation.

2. For exploitation and processing of minerals to be used as common construction materials, except riverbed sand and gravel, with an exploitation output not exceeding 100,000 cubic meters per year and an exploitation duration, including extended duration, not exceeding five years, the mineral exploration is not required.

3. For the following cases of exploitation and processing of minerals to be used as common construction materials, exploitation permits are not required:

a/ Exploitation of minerals to be used as common construction materials within land areas of projects on investment in works, which have already been approved or licensed by competent state agencies, provided that exploited products shall be used exclusively for construction of such works.

Before commencing the mineral exploitation, organizations with exploitation right must register exploitation areas, capacities, volumes, methods, equipment and plans at People's Committees of provinces or centrally-run cities. The management and use of exploited minerals must comply with the provisions of law.

b/ Exploitation of minerals to be used as common construction materials within residential land areas of households or individuals, which are used in compliance with the provisions of land law, provided that exploited products serve only the construction by such households or individuals.

4. The Government shall promulgate the list of minerals used as common construction materials."

8. To add Article 43a as follows:

"Article 43a.- Exploitation of minerals in areas where exist investment projects on work construction

1. The exploitation of minerals in areas where exist investment projects on construction of works, other than those specified in Clause 2 of this Article, shall comply with the following regulations:

a/ For areas where mineral resources have already been surveyed or assessed or where minerals have been discovered without survey or assessment, the competent state agencies defined in Clause 1 of Article 56 of this Law shall decide on the exploration to serve as basis for the grant of exploitation permits before projects are approved or granted investment licenses;

b/ For areas where mineral resources have not yet been surveyed or assessed, but minerals are discovered in the course of construction of works, the competent state agencies defined in Clause 1, Article 56 of this Law shall decide on the exploitation or non-exploitation thereof; decide on construction progress in case of exploitation in order to keep up with the construction schedule. In this case, mineral exploration is not required.

2. For areas where exist projects on investment in works of national importance falling under the National Assembly's competence to decide on investment policies, or important works subject to investment policies of the Government or the Prime Minister, where mineral resources have already been surveyed or assessed or where minerals have been discovered without survey or assessment, the Ministry of Natural Resources and Environment shall have to assume the prime responsibility for, and coordinate with concerned ministries and branches and People's Committees of provinces or centrally-run cities where such works exist in, deciding on the exploitation and grant of exploitation permits according to their competence provided for in Clause 1, Article 56 of this Law in order to ensure the work construction progress.

3. In cases where the exploitation of minerals specified in Clauses 1 and 2 of this Article is deemed inefficient or no organization or individual applies for exploitation permits, the competent state agencies defined in Clause 1, Article 56 of this Law shall decide on non-exploitation and reply in writing to investment-deciding agencies, investment-licensing agencies or investors.

4. For the exploitation of minerals specified in Clauses 1 and 2 of this Article, where organizations and individuals permitted to exploit minerals are not investors of works for which the State has assigned or leased land, the use of land for mineral exploitation shall be agreed upon by the two sides according to the provisions of land law."

9. Article 49 is amended and supplemented as follows:

"Article 49.- Full extraction

1. Full extraction shall be made for minerals left at mines, the closure of which has been decided for liquidation, or at refuse sites in exploitation and processing activities of mines, the closure of which has been decided.

2. Lawful permits for full extraction of minerals granted before the effective date of this Law shall continue to be valid for implementation until their expiration."

10. Article 55 is amended and supplemented as follows:

"Article 55.- Responsibilities for state management over minerals

1. The Government shall exercise the unified state management over minerals.

2. The Ministry of Natural Resources and Environment shall be responsible before the Government for performing the state management over minerals throughout the country.

3. The Ministry of Industry shall perform the state management over the industry of exploitation and processing of minerals, other than those used as construction materials or raw materials for cement production.

4. The Ministry of Construction shall perform the state management over the industry of exploitation and processing of minerals used as construction materials or raw materials for cement production.

5. People's Committees at all levels shall perform the state management over minerals in their localities according to their respective competence.

6. Ministries and ministerial-level agencies shall, within the ambit of their tasks and powers, have to coordinate with the Ministry of Natural Resources and Environment, the Ministry of Industry, the Ministry of Construction and People's Committees of provinces or centrally-run cities in performing the state management over minerals.

7. The Council for assessment of mineral reserves shall have the power and responsibility to assist the Government in appraising, considering and approving mineral reserves stated in reports on exploration of minerals, except those used as common construction materials and peat.

8. The Government shall specify the powers and responsibilities for state management over minerals of the Ministry of Natural Resources and Environment, the Ministry of Industry, the Ministry of Construction and People's Committees at all levels; the organization and operation of the Council for assessment of mineral reserves."

11. Article 56 is amended and supplemented as follows:

"Article 56.- Competence and procedures for granting, extending and withdrawing mineral activity permits

1. Competence to grant, extend, withdraw or permit the return of mineral activity permits or permit the transfer of the right to conduct mineral activities is provided for as follows:

a/ The Ministry of Natural Resources and Environment shall grant mineral survey permits, mineral exploration permits, mineral exploitation permits and mineral processing permits, except for the cases specified at Point b of this Clause;

b/ People's Committees of provinces or centrally-run cities shall grant permits for full extraction of minerals according to the provisions of Articles 49 and 50 of this Law; permits for survey, permits for exploration, permits for exploitation and permits for processing of minerals for use as common construction materials and peat; mineral exploitation permits and mineral processing permits for areas where mineral reserves have been surveyed, assessed, explored or approved but not falling under the national planning on mineral exploitation and processing already approved by the competent state agency or not treated as national reserves of mineral resources;

c/ Competent state agencies granting a certain type of mineral activity permit shall have the right to extend, withdraw or permit the return of such type of permit and permit the transfer of the right to conduct mineral activities according to the provisions of law.

2. The Government shall provide for conditions and procedures for granting, extending, withdrawing or permitting the return of mineral activity permits or permitting the transfer or bequeathal of the right to conduct mineral activities, or registering mineral activities."

Article 2.-

1. To annul Article 48 of the Law on Minerals.

2. To replace the phrase "Clauses 1 and 2 of Article 5" in Clause 1 of Article 21, Clause 1 of Article 25 and Clause 2 of Article 31 with the phrase "Clause 3 of Article 5."

Article 3.-

1. This Law takes effect as from October 1, 2005.

2. The Government shall detail and guide the implementation of this Law.

This Law was passed on June 14, 2005, by the XIth National Assembly of the Socialist Republic of Vietnam, at its 7th session.